Copper fell on Wednesday as investors took some money off the table amid concerns that top consumer demand for China would ease, while a solid dollar cut the metal’s appeal.
Benchmark copper was down 0.4% at $ 10,207 per tonne on the London Metal Exchange, trading at a narrow range of 1050 GMT.
“Investors are more cautious, which could lead to some profits,” said ING analyst Venue Yao.
The U.S. As the dollar index moves higher on Wednesday, there is little support for dynamic copper from the macro market, he said.
Yangson copper premium per tung. Demand for the metal imported into China fell to its lowest level since February 2016, at $ 28.50, as higher copper prices hampered downward consumption.
“Demand concerns have been raised at sea (in China), especially in copper,” broker Marex said in a note.
Supply threats from the by-elections in Peru and strikes at the BHP’s Escondida and Spence mines and the Valen Sudbury mines supported prices.
Overall, higher demand for copper is expected with a weaker supply response expected due to the global move towards a lower carbon economy, which could trigger future prices, analysts say.
Dollar: U.S. The dollar stabilized after hitting a five-month low as a pick-up in production, keeping alive the challenges to the quick normalization of Federal Reserve policy.
A strong dollar copper, U.S. The price of the coin makes it less attractive to buyers worldwide.
Spread: The LME cash copper discount for the three-month contract was $ 10 per tonne, which is premium on April 23, indicating a reduction in supply concerns compared to $30.15.
Level: The LME Cembile had their long-term position at 68% in February with an open interest rate of 26% as of Friday, Marex said.
Cash managers cut their net long-term position to 33,991 contracts for the third week in a row from May 25.
Other metals: LME aluminum was up 47,473 per tonne, zinc was up 1.1% at $ 3,097, lead was up 0.4% at 2,2,210, tin was up 0.1% at 7,30,760 and nickel was up $ 18,220.